Monthly view: Is DOW scare drop on the way?

Charts are telling us to be very cautious, as soon as we get the 1st dip in the RED line below zero mark, we shall expect a convincing bounce only to find more panic ahead. ONLY time will tell when we get that scare drop....

Considering where we are today, probability of making significant NEW HIGH is very LOW, however a marginal NEW HIGH cannot be rules out. Wait for the 1st drop and bounce before heavily shorting...

What goes up always comes down. Geopolitics today makes the US markets the standout of the major countries. We are still reaping the benefits of oil prices and our past QE programs. Now with the EU and Japan with their own long term programs we are sitting in a good place in regards to exchange. Earnings will give us a great picture of where we stand. Also the number of companies making new highs/lows will be a great indicator of the move ahead. We are starting to see rising prices in different sectors of our economy.

I can agree with you that we will have some consolidation ahead. We just have to determine now what the catalyst will be. Good post.